UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number		811-6629

Western Asset Managed Municipals Fund Inc.
(Exact name of registrant as specified in charter)

55 Water Street, New York, NY			10041
(Address of principal executive offices)			(Zip code)

Robert I. Frenkel, Esq. Legg Mason & Co., LLC 300 First Stamford Place Stamford, CT 06902
(Name and address of agent for service)

Registrant’s telephone number, including area code:		1-800-451-2010

Date of fiscal year end:	May 31

Date of reporting period:	August 31, 2008

ITEM 1.

SCHEDULE OF INVESTMENTS

WESTERN ASSET

MANAGED MUNICIPALS FUND INC.

FORM N-Q

AUGUST 31, 2008

Western Asset Managed Municipals Fund Inc.

Schedule of Investments (unaudited)

August 31, 2008

Face Amount		Security	Value
MUNICIPAL BONDS — 99.3%
Arizona — 3.9%
$	3,705,000	Greater Arizona Development Authority, Development Authority Infrastructure Revenue, Pinal County Road Project, MBIA, 5.000% due 8/1/19	$	3,972,094
4,000,000		Mesa, AZ, IDA, Revenue, Discovery Health Systems, MBIA, 5.625% due 1/1/29 (a)	4,228,040
		Phoenix, AZ:
3,000,000		Civic Improvement Corp. Airport Revenue, Senior Lien, FGIC, 5.250% due 7/1/22 (b)	2,979,390
1,000,000		GO, 5.000% due 7/1/27 (a)	1,051,500
		Salt Verde, AZ Financial Corp., Gas Revenue:
10,000,000		5.000% due 12/1/32	8,512,500
10,040,000		5.000% due 12/1/37	8,404,283
		Total Arizona	29,147,807
California — 9.5%
1,170,000		California EFA Revenue, 5.625% due 7/1/23	1,131,659
		California Health Facilities Finance Authority Revenue:
6,000,000		Cedars-Sinai Medical Center, 6.250% due 12/1/34 (a)	6,371,820
1,000,000		Sutter Health, 6.250% due 8/15/35	1,048,290
		California Housing Finance Agency Revenue, Home Mortgage:
3,100,000		4.700% due 8/1/24 (b)	2,801,036
10,000,000		4.800% due 8/1/37 (b)	8,243,500
5,000,000		California State Department of Veterans Affairs, Home Purchase Revenue, AMBAC, 5.350% due 12/1/27	5,065,900
9,500,000		California Statewide CDA Revenue, St. Joseph Health System, FGIC, 5.750% due 7/1/47	9,926,930
7,375,000		Garden Grove, CA, Agency for Community Development, Tax Allocation, Refunding, AMBAC, 5.000% due 10/1/29	7,298,890
6,000,000		Golden State Tobacco Securitization Corp., CA, Tobacco Settlement Revenue, 6.750% due 6/1/39 (a)	6,941,220
6,000,000		Long Beach, CA, Bond Finance Authority, Natural Gas Purpose Revenue, 5.500% due 11/15/28	5,654,040
3,340,000		Rancho Cucamonga, CA, RDA, Tax Allocation, Rancho Redevelopment Projects, MBIA, 5.125% due 9/1/30	3,337,795
1,145,000		Sacramento County, CA, COP, Unrefunded Balance, Public Facilities Project, MBIA, 5.375% due 2/1/19	1,158,099
5,000,000		San Diego, CA, USD GO, FSA, 5.000% due 7/1/28	5,420,150
3,000,000		San Mateo County Community College District, COP, MBIA, 5.000% due 10/1/25 (a)	3,348,540
2,500,000		Santa Clara, CA, RDA, Tax Allocation, Bayshore North Project, MBIA, 5.000% due 6/1/23	2,546,250
		Total California	70,294,119
Colorado — 9.3%
		Colorado Educational & Cultural Facilities Authority Revenue, University of Denver Project, AMBAC:
2,050,000		5.375% due 3/1/23 (a)	2,204,385
1,950,000		5.375% due 3/1/23 (a)	2,094,398
		Colorado Health Facilities Authority Revenue:
5,000,000		Refunding Adventist Health, Sunbelt, 5.250% due 11/15/35 (c)	4,703,550
4,000,000		Remarketed 7/8/98, 5.350% due 8/1/15 (d)	4,093,280
2,000,000		Denver, CO, City & County, COP, AMBAC, 5.500% due 12/1/25 (a)	2,158,900
		Denver, CO, City & County Airport Revenue:
10,945,000		6.125% due 11/15/25 (b)(d)	12,681,971
13,630,000		Unrefunded Balance, 6.125% due 11/15/25 (b)	13,745,991

See Notes to Schedule of Investments.

Western Asset Managed Municipals Fund Inc.

Schedule of Investments (unaudited) (continued)

August 31, 2008

Face Amount		Security	Value
Colorado — 9.3% (continued)
$	1,700,000	El Paso County, CO, COP, Detention Facility Project, AMBAC, 5.000% due 12/1/23	$	1,706,953
		Garfield County, CO, GO, School District No. 2, FSA, State Aid Withholding:
2,300,000		5.000% due 12/1/23	2,362,560
1,000,000		5.000% due 12/1/25	1,022,140
15,000,000		Public Authority for Colorado Energy, Natural Gas Purchase Revenue, 6.500% due 11/15/38	14,573,700
7,320,000		University of Colorado, COP, Master Lease Purchase Agreement, AMBAC, 5.000% due 6/1/28 (a)	7,925,218
		Total Colorado	69,273,046
Connecticut — 1.0%
		Connecticut State:
		GO:
4,490,000		5.500% due 6/15/21 (a)	4,943,849
1,600,000		5.000% due 6/15/22 (a)	1,733,152
970,000		HEFA Revenue, Child Care Facilities Project, AMBAC, 5.625% due 7/1/29	1,001,302
		Total Connecticut	7,678,303
Delaware — 1.4%
10,000,000		Delaware State, EDA Revenue, PCR, Refunding, Delmarva Project, AMBAC, 5.200% due 2/1/19	10,433,500
District of Columbia — 4.8%
35,000,000		District of Columbia, Hospital Revenue, Childrens Hospital Obligation, FSA, 5.450% due 7/15/35	35,600,600
Florida — 4.7%
5,000,000		Florida State Board of Education, Capital Outlay, GO, Public Education, Refunding, FSA, 5.000% due 6/1/24	5,107,300
1,465,000		Florida State Department of Transportation, GO, Right of Way Project, FGIC, 5.000% due 7/1/25	1,484,309
3,305,000		Jacksonville, FL, Electric Authority, Electric System Revenue, 5.000% due 10/1/28	3,334,348
5,620,000		Jacksonville, FL, Health Facilities Authority Revenue, Brooks Health System, 5.250% due 11/1/38	5,031,867
6,500,000		Martin County, FL, IDA Revenue, Indiantown Cogeneration Project, 7.875% due 12/15/25 (b)	6,507,215
1,290,000		Miami Beach, FL, Stormwater Revenue, FGIC, 5.375% due 9/1/30	1,307,931
4,545,000		Orange County, FL, Health Facilities Authority Revenue, Hospital-Orlando Regional Healthcare, 5.000% due 11/1/35	4,445,601
5,000,000		Orlando, FL, State Sales Tax Payments Revenue, 5.000% due 8/1/32	5,063,450
2,500,000		South Brevard, FL, Recreational Facilities Improvement, Special District, AMBAC, 5.000% due 7/1/20	2,551,950
		Total Florida	34,833,971
Georgia — 5.6%
4,440,000		Atlanta, GA, Development Authority Educational Facilities Revenue, Science Park LLC Project, 5.000% due 7/1/39	4,209,475
8,535,000		Burke County, GA, Development Authority, PCR, Oglethorpe Power Corp., Vogtle Project, 5.700% due 1/1/43	8,571,018
2,000,000		LaGrange-Troup County, GA, Hospital Authority Revenue, Anticipation Certificates, GO, 5.500% due 7/1/38	1,962,340
		Main Street Natural Gas Inc., GA, Gas Project Revenue:
4,000,000		5.000% due 3/15/22	3,485,840
12,750,000		5.500% due 9/15/24	11,403,345
5,205,000		5.500% due 9/15/27	4,530,901
		Private Colleges & Universities Authority Revenue, Mercer University Project:

See Notes to Schedule of Investments.

Western Asset Managed Municipals Fund Inc.

Schedule of Investments (unaudited) (continued)

August 31, 2008

Face Amount		Security	Value
Georgia — 5.6% (continued)
$	2,180,000	5.750% due 10/1/21 (a)	$	2,429,479
		Refunding:
2,000,000		5.250% due 10/1/25	1,964,540
1,000,000		5.375% due 10/1/29	966,320
2,000,000		Savannah, GA, EDA, Revenue, College of Arts & Design Inc. Project, 6.900% due 10/1/29 (a)	2,141,260
		Total Georgia	41,664,518
Hawaii — 0.5%
4,000,000		Hawaii State, Department of Budget & Finance, Special Purpose Revenue, Kaiser Permanente, 5.100% due 3/1/14 (d)	4,093,000
Illinois — 4.1%
4,095,000		Chicago, IL, Refunding GO, FGIC, 5.500% due 1/1/35	4,212,649
12,530,000		Illinois Finance Authority, Revenue, Alexian, FSA, 5.500% due 1/1/28	12,848,889
8,000,000		Illinois Health Facilities Authority Revenue, Order of Saint Francis Healthcare System, 6.250% due 11/15/29 (a)	8,485,920
5,000,000		Illinois State, GO, MBIA, 5.625% due 6/1/25 (a)	5,301,450
		Total Illinois	30,848,908
Indiana — 1.1%
3,000,000		Indiana State DFA Environment Improvement Revenue, USX Corp. Project, 5.250% due 12/1/22	3,092,160
5,000,000		Indianapolis, IN, Thermal Energy System, 5.000% due 10/1/25 (c)	5,074,950
		Total Indiana	8,167,110
Iowa — 0.3%
2,500,000		Iowa Finance Authority Single Family Mortgage Revenue, GNMA/FNMA, 4.900% due 7/1/31 (b)	2,147,450
Kentucky — 2.3%
		Louisville & Jefferson County, KY:
13,000,000		Metro Government Health System Revenue, Norton Healthcare Inc., 5.250% due 10/1/36	11,850,540
5,000,000		Metropolitan Government Health Facilities Revenue, Jewish Hospital St. Mary’s Healthcare, 6.125% due 2/1/37	5,065,600
		Total Kentucky	16,916,140
Maine — 0.2%
1,770,000		Maine State Housing Authority Mortgage Revenue, 5.300% due 11/15/23	1,751,840
Maryland — 1.2%
		Baltimore, MD, Project Revenue, Refunding, Wastewater Projects, FGIC:
2,500,000		5.125% due 7/1/32	2,500,250
3,385,000		5.200% due 7/1/32	3,417,428
3,075,000		Maryland State Health & Higher EFA Revenue, Johns Hopkins Hospital Issue, 5.000% due 11/15/26 (a)	3,382,777
		Total Maryland	9,300,455
Massachusetts — 4.7%
2,430,000		Massachusetts Bay Transportation Authority, Sales Tax Revenue, 5.500% due 7/1/30 (a)(e)	2,580,247
1,125,000		Massachusetts DFA Revenue, Merrimack College Issue, MBIA, 5.200% due 7/1/32	1,050,705
1,850,000		Massachusetts HEFA Revenue, University of Massachusetts Issue, FGIC, 5.125% due 10/1/27	1,865,817
3,500,000		Massachusetts State DFA Revenue, Boston University, AMBAC, 5.000% due 10/1/39	3,371,690

See Notes to Schedule of Investments.

Western Asset Managed Municipals Fund Inc.

Schedule of Investments (unaudited) (continued)

August 31, 2008

Face Amount		Security	Value
Massachusetts — 4.7% (continued)
$	5,000,000	Massachusetts State Special Obligation Revenue, Consolidated Loan, FGIC, 5.000% due 6/1/21 (a)	$	5,365,900
		Massachusetts State:
		GO, Consolidated Loan:
10,950,000		5.250% due 11/1/30 (a)	11,941,851
6,050,000		Refunded Balance, 5.250% due 11/1/30 (a)	6,598,009
2,500,000		HEFA Revenue, Berklee College of Music, 5.000% due 10/1/32	2,441,750
		Total Massachusetts	35,215,969
Michigan — 2.6%
5,000,000		East Lansing, MI, Community School District, GO, School Building & Site, Q-SBLF, 5.625% due 5/1/30 (a)	5,294,900
		Michigan State, COP, AMBAC:
2,345,000		5.500% due 6/1/19 (a)(e)	2,479,322
6,000,000		5.500% due 6/1/27 (a)	6,343,680
2,500,000		Michigan State Hospital Finance Authority Revenue, Refunding, Trinity Health Credit, 5.375% due 12/1/23	2,545,750
3,000,000		Michigan State Housing Development Authority, Rental Housing Revenue, 5.300% due 10/1/26 (b)	2,979,180
		Total Michigan	19,642,832
Minnesota — 1.9%
1,500,000		Dakota County, MN, CDA, MFH Revenue, Southfork Apartments, FNMA-Collateralized, 5.625% due 2/1/26	1,512,585
4,000,000		Minneapolis & St. Paul, MN, Metropolitan Airports Commission, Airport Revenue, FGIC, 5.250% due 1/1/26 (a)	4,265,520
7,000,000		Minneapolis, MN, Healthcare System Revenue, Allina Health System, 6.000% due 11/15/23 (a)	7,860,230
310,000		Minnesota State Housing Financing Agency, Single-Family Mortgage, 5.500% due 1/1/17	311,038
		Total Minnesota	13,949,373
Mississippi — 0.6%
4,000,000		Mississippi Development Bank, Special Obligation, Capital Projects & Equipment Program, AMBAC, 5.625% due 7/1/31	4,138,280
Missouri — 0.9%
1,500,000		Greene County, MO, Reorganized School District No. 8, GO, Missouri State Aid Direct Deposit Program, FSA, 5.100% due 3/1/22	1,609,350
5,000,000		Platte County, MO, IDA Revenue, Refunding & Improvement Zona Rosa Retail Project, 5.000% due 12/1/32	5,025,350
		Total Missouri	6,634,700
Montana — 1.2%
9,550,000		Montana State Board of Investment, Resource Recovery Revenue, Yellowstone Energy LP Project, 7.000% due 12/31/19 (b)	9,292,532
Nebraska — 0.4%
3,000,000		Nebraska Public Power Generation Agency Revenue, Whelan Energy Center Unit 2-A, AMBAC, 5.000% due 1/1/25	3,050,880
Nevada — 1.7%
12,750,000		Reno, NV, Hospital Revenue, Washoe Medical Centre, FSA, 5.500% due 6/1/33	12,892,545
New Jersey — 4.4%
		New Jersey Health Care Facilities Financing Authority Revenue:
3,875,000		Englewood Hospital, FHA/MBIA, 5.000% due 8/1/23	3,953,314
8,000,000		Robert Wood Johnson University Hospital, 5.700% due 7/1/20	8,208,160

See Notes to Schedule of Investments.

Western Asset Managed Municipals Fund Inc.

Schedule of Investments (unaudited) (continued)

August 31, 2008

Face Amount		Security	Value
New Jersey — 4.4% (continued)
$	2,395,000	New Jersey State Highway Authority, Garden State Parkway General Revenue, 5.625% due 1/1/30 (a)	$	2,534,796
		New Jersey State:
3,125,000		EDA, PCR, Refunding, PSEG Power LLC Project, 5.000% due 3/1/12	3,206,406
10,000,000		Higher Education Assistance Authority, Student Loan Revenue, Student Loan, 6.125% due 6/1/30 (b)	9,981,000
1,350,000		South Jersey Port Corp., New Jersey Revenue, Refunding, 5.000% due 1/1/26	1,359,815
3,040,000		Tobacco Settlement Financing Corp., NJ, Asset-Backed Bonds, 5.750% due 6/1/32	3,304,480
		Total New Jersey	32,547,971
New Mexico — 0.1%
440,000		New Mexico Mortgage Financing Authority, Single-Family Mortgage Revenue, 5.625% due 9/1/28 (e)	440,427
New York — 3.5%
		Nassau Health Care Corp., New York Health Systems Revenue, FSA:
2,000,000		5.500% due 8/1/19 (a)	2,100,440
3,000,000		5.750% due 8/1/29 (a)	3,157,380
		New York City, NY:
5,100,000		Housing Development Corp. Revenue, Capital Fund Package, New York City Housing Authority, FGIC, 5.000% due 7/1/25	5,114,280
6,000,000		Municipal Water Finance Authority, Water & Sewer System Revenue, 5.250% due 6/15/25	6,192,300
		New York State Dormitory Authority Revenue:
5,000,000		State University Educational Facility, FSA, 5.500% due 5/15/30 (a)	5,357,100
1,000,000		Willow Towers Inc. Project, GNMA-Collateralized, 5.250% due 2/1/22	1,029,530
3,000,000		New York State Thruway Authority, Highway & Bridge, Transportation Fund, FGIC, 5.400% due 4/1/17 (a)	3,194,160
		Total New York	26,145,190
North Carolina — 0.9%
1,750,000		Charlotte, NC, COP, Governmental Facilities Projects, 5.000% due 6/1/28	1,775,672
1,615,000		Harnett County, NC, GO, Refunded Custody Receipts, AMBAC, 5.250% due 6/1/24	1,686,367
1,000,000		Iredell County, NC, COP, Iredell County School Project, FSA, 5.000% due 6/1/28	1,031,850
		North Carolina Capital Facilities Finance Agency, Educational Facilities Revenue, Elizabeth City State University Housing Foundation LLC Project, AMBAC:
1,000,000		5.000% due 6/1/23	1,029,670
1,250,000		5.000% due 6/1/33	1,265,688
		Total North Carolina	6,789,247
North Dakota — 1.4%
10,250,000		North Dakota State Housing Finance Agency Revenue, Housing Finance Program, Home Mortgage Finance, 5.625% due 1/1/39	10,297,048
Ohio — 5.3%
2,000,000		Canton, OH, City School District, GO, Variable Purpose, MBIA, 5.500% due 12/1/20 (a)	2,148,980
3,000,000		Cuyahoga County, OH, Hospital Revenue, University Hospitals Health System Inc., AMBAC, 5.500% due 1/15/30 (a)	3,123,390
1,000,000		Garfield Heights, OH, City School District, School Improvement, FSA, 5.000% due 12/15/22	1,038,430
		Hamilton County, OH:
2,000,000		Hospital Facilities Revenue, Cincinnati Childrens Hospital, FGIC, 5.250% due 5/15/23	1,963,700
5,075,000		Sales Tax Revenue, AMBAC, 5.250% due 12/1/32	5,106,516

See Notes to Schedule of Investments.

Western Asset Managed Municipals Fund Inc.

Schedule of Investments (unaudited) (continued)

August 31, 2008

Face Amount		Security	Value
Ohio — 5.3% (continued)
$	7,500,000	Lorain County, OH, Hospital Revenue, Catholic Healthcare Partners, 5.375% due 10/1/30	$	7,477,425
5,990,000		Lucas County, OH, Hospital Revenue, Promedica Healthcare Obligation Group, AMBAC, 5.375% due 11/15/29	5,896,436
3,025,000		Muskingum County, OH, GO, Refunding & County Facilities Improvement, MBIA, 5.125% due 12/1/19	3,122,859
1,375,000		Ohio State, Higher Educational Facility Commission Revenue, University of Dayton Project, AMBAC, 5.500% due 12/1/25 (a)	1,485,811
1,805,000		Ohio State Revenue, Revitalization Project, AMBAC, 5.000% due 4/1/21	1,881,153
1,500,000		Steubenville, OH, Hospital Revenue, 6.375% due 10/1/20 (a)	1,630,140
		Summit County, OH, GO, FGIC:
1,000,000		5.000% due 12/1/21	1,035,320
500,000		5.000% due 12/1/22	515,290
1,500,000		Trumbull County, OH, GO, MBIA, 5.200% due 12/1/20	1,579,575
1,500,000		Warrensville Heights, OH, GO, City School District, School Improvements, FGIC, 5.625% due 12/1/20 (a)(e)	1,624,965
		Total Ohio	39,629,990
Oregon — 2.1%
3,210,000		Clackamas County, OR, Hospital Facilities Authority Revenue, Legacy Health System, 5.750% due 5/1/16	3,374,063
4,895,000		Oregon State Department of Transportation, Highway User Tax Revenue, 5.125% due 11/15/23 (a)	5,379,165
1,680,000		Oregon State Housing & Community Services Department, Mortgage Revenue, Single-Family Mortgage Program, 5.050% due 7/1/26 (b)	1,578,226
3,980,000		Oregon State Veterans Welfare, GO, 5.500% due 12/1/42	3,994,845
1,000,000		Umatilla County, OR, Hospital Facility Authority Revenue, Catholic Health Initiatives, 5.000% due 5/1/32	950,690
		Total Oregon	15,276,989
Pennsylvania — 2.8%
18,745,000		State Public School Building Authorities, School Revenue, Philadelphia School District Project, FSA, State Aid Withholding, 5.250% due 6/1/26 (a)	20,717,536
South Carolina — 2.9%
		Berkeley County, SC:
10,000,000		PCR, Refunding, SC Generating Co. Project, 4.875% due 10/1/14	10,218,400
2,025,000		Water & Sewer Revenue, FSA, 5.000% due 6/1/23	2,108,268
		South Carolina Transportation Infrastructure Bank Revenue:
2,505,000		AMBAC, 5.125% due 10/1/31 (a)	2,703,045
3,000,000		MBIA, 5.500% due 10/1/30 (a)	3,144,720
3,000,000		Refunding, AMBAC, 5.000% due 10/1/23	3,066,210
		Total South Carolina	21,240,643
Tennessee — 2.3%
955,000		Hardeman County, TN, Correctional Facilities Corp., Correctional Facilities Revenue, 7.750% due 8/1/17	965,027
6,420,000		Memphis-Shelby County, TN, Sports Authority Income Revenue, Memphis Arena Project, AMBAC, 5.125% due 11/1/21 (a)	7,036,191
3,000,000		Tennessee Energy Acquisition Corp., Gas Revenue, 5.000% due 2/1/27	2,651,190
7,170,000		Tennessee Housing Development Agency, Home Ownership Program, 4.950% due 1/1/37 (b)	6,197,820
		Total Tennessee	16,850,228
Texas — 5.2%
5,000,000		Brazos River Authority Texas PCR, TXU Co., 8.250% due 5/1/33 (b)(f)	4,926,650
5,000,000		Brazos River, TX, Harbor Navigation District, Brazoria County Environmental, Dow Chemical Co. Project, 5.950% due 5/15/33 (b)(c)	4,643,550

See Notes to Schedule of Investments.

Western Asset Managed Municipals Fund Inc.

Schedule of Investments (unaudited) (continued)

August 31, 2008

Face Amount		Security	Value
Texas — 5.2% (continued)
		Dallas-Fort Worth, TX:
$	5,000,000	International Airport Facilities Improvement Corp. Revenue, American Airlines Inc., Guarantee Agreement, 6.375% due 5/1/35 (b)	$	2,995,150
5,000,000		International Airport Revenue, MBIA, 6.000% due 11/1/23 (b)	5,029,450
1,000,000		Harris County, TX, Health Facilities Development Corp., School Health Care System, Revenue, 5.750% due 7/1/27 (d)	1,158,020
		North Texas Tollway Authority Revenue:
5,000,000		5.750% due 1/1/33	4,865,550
15,000,000		5.750% due 1/1/40	14,848,050
		Total Texas	38,466,420
Virginia — 1.8%
3,000,000		Chesterfield County, VA, IDA, PCR, Virginia Electric & Power Co., Remarketed 11/8/02, 5.875% due 6/1/17	3,136,350
10,000,000		Virginia State HDA Commonwealth Mortgage Revenue, MBIA, 5.350% due 7/1/31	10,007,000
		Total Virginia	13,143,350
West Virginia — 0.6%
		West Virginia State Housing Development Fund, Housing Finance Revenue:
3,845,000		5.300% due 5/1/24	3,864,763
400,000		5.350% due 11/1/27	400,972
		Total West Virginia	4,265,735
Wisconsin — 0.3%
		Wisconsin State HEFA Revenue:
1,100,000		Kenosha Hospital & Medical Center Project, 5.700% due 5/15/20	1,115,147
1,250,000		Medical College of Wisconsin Inc. Project, MBIA, 5.400% due 12/1/16	1,259,825
		Total Wisconsin	2,374,972
Wyoming — 1.8%
13,890,000		Wyoming CDA, Housing Revenue, 5.600% due 6/1/35 (b)	13,476,773
		TOTAL INVESTMENTS BEFORE SHORT-TERM INVESTMENTS (Cost — $721,253,831)	738,630,397
SHORT-TERM INVESTMENTS — 0.7%
Florida — 0.3%
100,000		Jacksonville, FL, Electric Authority Revenue, Electric Systems, SPA-Bank of America, 2.350%, 9/2/08 (g)	100,000
2,000,000		Orlando & Orange County, FL, Expressway Authority, Revenue, FSA, SPA-Dexia Credit Local, 1.950%, 9/4/08 (g)	2,000,000
		Total Florida	2,100,000
New York — 0.3%
2,300,000		Long Island Power Authority, NY, Electric System Revenue, FSA, SPA-Dexia Credit Local, 2.100%, 9/5/08 (g)	2,300,000
Tennessee — 0.0%
300,000		Clarksville, TN, Public Building Authority Revenue, Pooled Financing, Tennessee Municipal Bond Fund, LOC-Bank of America N.A., 2.450%, 9/2/08 (g)	300,000
Virginia — 0.1%
400,000		Virginia Commonwealth University, LOC-Wachovia Bank NA, AMBAC, 2.450%, 9/2/08 (g)	400,000
		TOTAL SHORT-TERM INVESTMENTS (Cost — $5,100,000)	5,100,000
		TOTAL INVESTMENTS — 100.0% (Cost — $726,353,831#)	743,730,397

See Notes to Schedule of Investments.

Western Asset Managed Municipals Fund Inc.

Schedule of Investments (unaudited) (continued)

August 31, 2008

(a)	Pre-Refunded bonds are escrowed with U.S. government obligations and/or U.S. government agency securities and are considered by the manager to be triple-A rated even if issuer has not applied for new ratings.
(b)	Income from this issue is considered a preference item for purposes of calculating the alternative minimum tax (“AMT”).
(c)	Variable rate security. Interest rate disclosed is that which is in effect at August 31, 2008.
(d)	Bonds are escrowed to maturity by government securities and/or U.S. government agency securities and are considered by the manager to be triple-A rated even if issuer has not applied for new ratings.
(e)	All or a portion of this security is held at the broker as collateral for open futures contracts.
(f)	Security is exempt from registration under Rule 144A of the Securities Act of 1933. This security may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. This security has been deemed liquid pursuant to guidelines approved by the Board of Directors, unless otherwise noted.
(g)	Variable rate demand obligations have a demand feature under which the Fund can tender them back to the issuer on no more than 7 days notice. Date shown is the date of the next interest rate change.
#	Aggregate cost for federal income tax purposes is substantially the same.

Abbreviations used in this schedule:
AMBAC	-	Ambac Assurance Corporation - Insured Bonds
CDA	-	Community Development Authority
COP	-	Certificate of Participation
DFA	-	Development Finance Agency
EDA	-	Economic Development Authority
EFA	-	Educational Facilities Authority
FGIC	-	Financial Guaranty Insurance Company - Insured Bonds
FHA	-	Federal Housing Administration
FNMA	-	Federal National Mortgage Association
FSA	-	Financial Security Assurance - Insured Bonds
GNMA	-	Government National Mortgage Association
GO	-	General Obligation
HDA	-	Housing Development Agency
HEFA	-	Health & Educational Facilities Authority
IDA	-	Industrial Development Authority
LOC	-	Letter of Credit
MBIA	-	Municipal Bond Investors Assurance Corporation - Insured Bonds
MFH	-	Multi-Family Housing
PCR	-	Pollution Control Revenue
Q-SBLF	-	Qualified School Board Loan Fund
RDA	-	Redevelopment Agency
SPA	-	Standby Bond Purchase Agreement - Insured Bonds
USD	-	Unified School District

Summary of Investments by Industry*

Pre-Refunded/Escrowed to Maturity	30.9	%
Hospitals	19.2
Industrial Development	11.3
Housing	10.2
Transportation	5.8
Electric	5.5
Special Tax	4.3
Education	4.0
Local General Obligation	2.6
Water & Sewer	2.1
Resource Recovery	1.3
State General Obligation	1.2
Leasing	0.8
Other Revenue	0.4
Utilities	0.3
Public Facilities	0.1
	100.0	%

* As a percentage of total investments. Please note that Fund holdings are as of August 31, 2008 and are subject to change.

See Notes to Schedule of Investments.

Western Asset Managed Municipals Fund Inc.

Schedule of Investments (unaudited) (continued)

August 31, 2008

Ratings Table†

S&P/Moody’s‡

AAA/Aaa	27.0	%
AA/ Aa	37.6
A	25.8
BBB/Baa	3.6
BB/Ba	1.0
CCC/Caa	1.1
A-1/VMIG1	0.7
NR	3.2
	100.0	%

† As a percentage of total investments.

‡ S&P primary rating, then Moody’s.

See pages 10 and 11 for definitions of ratings.

See Notes to Schedule of Investments.

Bond Ratings (unaudited)

The definitions of the applicable rating symbols are set forth below:

Standard & Poor’s Ratings Service (“Standard & Poor’s”)—Ratings from “AA” to “CCC” may be modified by the addition of a plus (+) or minus (—) sign to show relative standings within the major rating categories.

AAA	—	Bonds rated “AAA” have the highest rating assigned by Standard & Poor’s. Capacity to pay interest and repay principal is extremely strong.
AA	—	Bonds rated “AA” have a very strong capacity to pay interest and repay principal and differ from the highest rated issues only in a small degree.
A	—	Bonds rated “A” have a strong capacity to pay interest and repay principal although they are somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than debt in higher rated categories.
BBB	—	Bonds rated “BBB” are regarded as having an adequate capacity to pay interest and repay principal. Whereas they normally exhibit adequate protection parameters, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to pay interest and repay principal for bonds in this category than in higher rated categories.
BB, B,
CCC,
CC and C		Bonds rated “BB”, “B”, “CCC”, “CC” and “C” are regarded, on balance, as predominantly speculative with respect to capacity to pay interest and repay principal in accordance with the terms of the obligation. “BB” represents the lowest degree of speculation and “C” the highest degree of speculation. While such bonds will likely have some quality and protective characteristics, these are outweighed by large uncertainties or major risk exposures to adverse conditions.
D	—	Bonds rated “D” are in default and payment of interest and/or repayment of principal is in arrears.

Moody’s Investors Service (“Moody’s”)—Numerical modifiers 1, 2 and 3 may be applied to each generic rating from “Aa” to “Caa,” where 1 is the highest and 3 the lowest ranking within its generic category.

Aaa	—	Bonds rated “Aaa” are judged to be of the best quality. They carry the smallest degree of investment risk and are generally referred to as “gilt edge.” Interest payments are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective elements are likely to change, such changes can be visualized as most unlikely to impair the fundamentally strong position of such issues.
Aa	—	Bonds rated “Aa” are judged to be of high quality by all standards. Together with the “Aaa” group they comprise what are generally known as high grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in “Aaa” securities or fluctuation of protective elements may be of greater amplitude or there may be other elements present which make the long-term risks appear somewhat larger than in “Aaa” securities.
A	—	Bonds rated “A” possess many favorable investment attributes and are to be considered as upper medium grade obligations. Factors giving security to principal and interest are considered adequate but elements may be present which suggest a susceptibility to impairment some time in the future.
Baa	—	Bonds rated “Baa” are considered as medium grade obligations, i.e., they are neither highly protected nor poorly secured. Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over any great length of time. Such bonds lack outstanding investment characteristics and in fact have speculative characteristics as well.
Ba	—	Bonds rated “Ba” are judged to have speculative elements; their future cannot be considered as well assured. Often the protection of interest and principal payments may be very moderate and therefore

Bond Ratings (unaudited)(continued)

		not well safeguarded during both good and bad times over the future. Uncertainty of position characterizes bonds in this class.
B	—	Bonds rated “B” generally lack characteristics of desirable investments. Assurance of interest and principal payments or of maintenance of other terms of the contract over any long period of time may be small.
Caa	—	Bonds rated “Caa” are of poor standing. These may be in default, or present elements of danger may exist with respect to principal or interest.
Ca	—	Bonds rated “Ca” represent obligations which are speculative in a high degree. Such issues are often in default or have other marked short-comings.
C	—	Bonds rated “C” are the lowest class of bonds and issues so rated can be regarded as having extremely poor prospects of ever attaining any real investment standing.
NR	—	Indicates that the bond is not rated by Standard & Poor’s or Moody’s.

Short-Term Security Ratings (unaudited)

SP-1	—	Standard & Poor’s highest rating indicating very strong or strong capacity to pay principal and interest; those issues determined to possess overwhelming safety characteristics are denoted with a plus (+) sign.
A-1	—	Standard & Poor’s highest commercial paper and variable-rate demand obligation (VRDO) rating indicating that the degree of safety regarding timely payment is either overwhelming or very strong; those issues determined to possess overwhelming safety characteristics are denoted with a plus (+) sign.
VMIG 1	—	Moody’s highest rating for issues having a demand feature— VRDO.
MIG1	—	Moody’s highest rating for short-term municipal obligations.
P-1	—	Moody’s highest rating for commercial paper and for VRDO prior to the advent of the VMIG 1 rating.

Notes to Schedule of Investments (unaudited)

1. Organization and Significant Accounting Policies

Western Asset Managed Municipals Fund Inc. (the “Fund”) was incorporated in Maryland and is registered as a non-diversified, closed-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund’s investment objective is to seek as high a level of current income exempt from federal tax as is consistent with the preservation of principal.

The following are significant accounting policies consistently followed by the Fund and are in conformity with U.S. generally accepted accounting principles (“GAAP”).

(a) Financial Futures Contracts. The Fund may enter into financial futures contracts typically to hedge a portion of the portfolio. Upon entering into a financial futures contract, the Fund is required to deposit cash or securities as initial margin, equal to a certain percentage of the contract amount (initial margin deposit). Additional securities are also segregated up to the current market value of the financial futures contracts. Subsequent payments, known as “variation margin,” are made or received by the Fund each day, depending on the daily fluctuations in the value of the underlying financial instruments. For foreign denominated futures, variation margins are not settled daily. The Fund recognizes an unrealized gain or loss equal to the fluctuation in the value. When the financial futures contracts are closed, a realized gain or loss is recognized equal to the difference between the proceeds from (or cost of) the closing transactions and the Fund’s basis in the contracts.

The risks associated with entering into financial futures contracts include the possibility that a change in the value of the contract may not correlate with the changes in the value of the underlying financial instruments. In addition, investing in financial futures contracts involves the risk that the Fund could lose more than the initial margin deposit and subsequent payments required for a futures transaction. Risks may also arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts.

(b) Security Transactions. Security transactions are accounted for on a trade date basis.

2. Investment Valuation

Effective June 1, 2008, the Fund adopted Statement of Financial Accounting Standards No. 157 (“FAS 157”). FAS 157 establishes a single definition of fair value, creates a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Fund’s investments, and requires additional disclosure about fair value. The hierarchy of inputs is summarized below.

	Level 1 – quoted prices in active markets for identical investments
	Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
	Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

Securities are valued at the mean between the last quoted bid and asked prices provided by an independent pricing service that are based on transactions in municipal obligations, quotations from municipal bond dealers, market transactions in comparable securities and various other relationships between securities. When prices are not readily available, or are determined not to reflect fair value, the Fund may value these securities at fair value as determined in accordance with the procedures approved by the Fund’s Board of Directors. Short-term obligations with maturities of 60 days or less are valued at amortized cost, which approximates fair value.

The following is a summary of the inputs used in valuing the Fund’s assets carried at fair value:

	August 31, 2008		Quoted Prices (Level 1)		Other Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Investments in Securities	$	743,730,397	—		$	743,730,397	—
Other Financial Instruments*	111,414		$	111,414	—		—
Total	$	743,841,811	$	111,414	$	743,730,397	—

* Other financial instruments includes futures contracts.

Notes to Schedule of Investments (unaudited) (continued)

3. Investments

At August 31, 2008, the aggregate gross unrealized appreciation and depreciation of investments for federal income tax purposes were substantially as follows:

Gross unrealized appreciation	$	28,250,425
Gross unrealized depreciation	(10,873,859		)
Net unrealized appreciation	$	17,376,566

At August 31, 2008, the Fund had the following open futures contracts:

	Number of Contracts	Expiration Date	Basis Value	Market Value	Unrealized Gain
Contracts to Sell:
U.S. Treasury Bonds	474	12/08	$55,717,539	$55,606,125	$111,414

4. Recent Accounting Pronouncement

In March 2008, the Financial Accounting Standards Board issued the Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (“FAS 161”). FAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008. FAS 161 requires enhanced disclosures about the Fund’s derivative and hedging activities, including how such activities are accounted for and their effect on the Fund’s financial position, performance and cash flows. Management is currently evaluating the impact the adoption of FAS 161 will have on the Fund’s financial statements and related disclosures.

ITEM 2.	CONTROLS AND PROCEDURES.

	(a)	The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange Act of 1934.

	(b)	There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are likely to materially affect the registrant’s internal control over financial reporting.

ITEM 3.	EXHIBITS.

	Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940, as amended, are attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Western Asset Managed Municipals Fund Inc.

By	/s/ R. Jay Gerken
R. Jay Gerken
Chief Executive Officer

Date: October 29, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By	/s/ R. Jay Gerken
R. Jay Gerken
Chief Executive Officer

Date: October 29, 2008

By	/s/ Kaprel Ozsolak
Kaprel Ozsolak
Chief Financial Officer

Date: October 29, 2008